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Pruitt Corporation owns 9 0 % of the common stock of Sedbrook Company. The stock was purchased for $ 6 2 6 , 1 3

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Pruitt Corporation owns 90% of the common stock of Sedbrook Company. The stock was purchased for $626,130 on January 1,2012, when Sedbrook Companys retained earnings were $95,300. Preclosing trial balances for the two companies at December 31,2016, are presented here:
Pruitt Corporation Sedbrook Company
Cash $91,200 $96,100
Accounts Receivable (net)241,400135,800
Inventory 1/1165,800133,000
Investment in Sedbrook Co.626,130
Other Assets 551,500476,600
Dividends Declared 109,90035,000
Purchases 926,400420,700
Other Expenses 196,900163,400
Total $2,909,230 $1,460,600
Accounts Payable $76,200 $36,200
Other Liabilities 121,90047,400
Common Stock 877,400600,400
Retained Earnings (1/1)593,200142,600
Sales 1,209,030634,000
Dividend Income 31,500
Total $2,909,230 $1,460,600
Ending Inventory $217,800 $143,600
The January 1,2016, inventory of Sedbrook Company includes $24,800 of profit recorded by Pruitt Corporation on 2015 sales. During 2016, Pruitt Corporation made intercompany sales of $252,500 with a markup of 20% on cost. The ending inventory of Sedbrook Company includes goods purchased in 2016 from Pruitt for $59,700.
Prepare the consolidated statements workpaper for the year ended December 31,2016.(List items that increase retained earnings first.)
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